 Contingent Cargo Insurance for Freight Brokers
What is Contingent Cargo Insurance?
This policy provides legal defense coverage in the event you are named in a lawsuit. Contrary to popular belief, these policies are not designed to provide comprehensive cargo coverage for the freight. Your best insurance policy is calling the Motor Carrier's insurance agent and asking them for any exclusions on the commodity that you are about to move. So, why buy it? To have the legal defense and to GET THE CONTRACT. Good luck trying to convince your shippers that they "don't really know everything" about this part of the business. Their legal staff advises them what they need to increase their odds of better outcome in the event of a claim, so they follow suit.
I hope this answers some of your questions, and thanks to JW SURETY for the forum. They truly are an icon in the industry. |